I’d like to ask a question. When we run the adjust exchange rates batch job and we tickmark the adjust customer, vendor and bank accounts field, the account receivables and account payables of each customer and vendor with foreign currency and posting date between the starting date and ending date that we define in the batch job is adjusted. But it was adjusted by the total account payables of that vendor that is the purchase value excl. vat + the vat.
For example, I have a transaction on 01 Dec 2006 with a vendor at 100 US$ (excl. VAT). It has a VAT at 10%. Thus, the VAT is 10 US$. The exch. rate at that date is (i. e. 1 US$ for Rp. 9000). So the journal is :
Dr Inventory RM 900000
Dr VAT - In 90000
Cr Account Payables 990000
When I run the adjust exchange rates batch job with ending date 04 Dec 2006 and I have an relational adjustment exch. rate amount of 1 US$ for Rp. 9500 at that date, the program adjust the account payables account of 110 US$ that occured on 01 Dec 2006 with rate Rp. 9000 for 1 US$ with the adjustment rate of Rp. 9500 for 1 US$ so the Account Payables account is now become Rp. 1045000.
Now, what I want is the program is not adjust the total 110 US$ account payables account. But I only want to adjust the 100 US$ for the account payables not including the 10 US$ from the VAT. So, the Account Payables after I adjust is become : Rp. 990000 + (100 US$ x Rp. 500) = Rp. 990000 + Rp. 50000 = Rp. 1040000. Not Rp. 1045000.
Does Anybody know how to do this in Navision? Highly appreciate any help. Thanks.
So basically, if I understand it correctly, you are looking for a way to exempt the VAT when you do an exchange Adjustment?
I believe this is the way it can be done:
There are multiple ways to start an Exchange Adjustment, from different modules.
Best way for you would be to use the one in the General Ledger module, so it runs ledger by ledger.
In the setup of your VAT Ledger Accounts (General Ledger/Chart of accounts/ tab General) in the Administration Group, you make sure that “Exchange adjustment” is unchecked for all your VAT ledger accounts.
I believe this should be the solution to your problem.
The routine is restating your positions. Ultimately if you owe the supplier $100 and the exchange rate alters to $110 the VAT element becomes irrelevant for the revaluation - you owe them $110 now. Of course as this is currency the base remains, as does the VAT ultimately in your accounts. This would, as I understand it, be the correct restating of the position. However in your example you refer to the GL account updating of the process, my understanding is it does not adjust these, just the additional reporting currency.
Why are you trying to achieve what you are trying to achieve? Is it a local requirement? Just trying to understand a bit more - however I believe as standard Navision will not handle what you want - if you revalue a debt/liability/bank position, it is the debt/liability/bank position that is revalued, not defined constituent parts.